GEICO ends 2025 with $6.8 billion profit

GEICO ended 2025 with a $6.8 billion underwriting profit, a 13% decrease compared to 2024.

Premiums written increased $2.3 billion (5.3%) in 2025 compared to 2024, primarily attributable to an increase in policies-in-force over the past year.

Losses and LAE increased $1.8 billion (6%) in 2025 compared to 2024. GEICO’s loss ratio (losses and LAE to premiums earned) was 72.3% in 2025 and 71.8% in 2024. The loss ratio increase in 2025 reflected the impact of higher average claims severities, partially offset by an increase in average earned premiums per policy, lower catastrophe losses and a comparative increase in favorable development of prior accident years’ claims estimates. Losses and LAE incurred in 2024 from Hurricanes Helene and Milton were approximately $360 million.

Underwriting expenses increased 34.2% in 2025 compared to 2024. GEICO’s expense ratio (underwriting expense to premiums earned) was 12.4% in 2025, an increase of 2.7 percentage points compared to 2024. The increases were driven by higher advertising and other policy acquisition expenses.

After cutting its workforce from a peak of 42,146 employees in 2020 to just 28,247 by 2024, GEICO closed out 2025 with a 4.5% rebound in headcount, ending the year with 29,541 employees.